BI to issue new banking rules

NUSA DUA, Bali: The central bank will soon release two crucial regulations to accelerate banking activities, strengthen banking institutions and to boost real economic sectors, including small- to medium enterprises (SMEs).

Speaking on Wednesday after the opening of a three-day seminar on microbanking in Nusa Dua, Bali, Bank Indonesia governor Burhanuddin Abdullah said the new regulations were expected to accelerate economic growth to around 6 percent in 2005.

The regulations also aim to empower the SME sector and boost infrastructure development, which was halted due to the economic crisis.

As for SMEs, the central bank will grant greater flexibility to both private and state banks to provide loans to the sector.

The revitalization of the two sectors are expected to promote economic activities across the country.-- JP